The New Deal Flashcards
What was the period between these dates called, Before Roosevelt took office in March 1933, and what did this period entail
Lame-duck months. It is when the new Administration is not yet in place-Roosevelt worked out the new deal in greater detail
Between what dates was the election victory of Roosevelt
November 1932 and Roosevelt taking office in March 1933
What theories did Roosevelt adopt - of a British men named who and what was this mans occupation
The British economist J.M.Keynes: that’s the way to end the depression was to put money in peoples pockets
What would Roosevelts Theory do?
Increase spending, which would stimulate industry and thereby kickstart the new cycle of prosperity
What did the new deal require
Massive state involvement in the economy and then setting up of government-controlled agencies
What was so significant about Roosevelts authority. What did Congress grant him?
He was given the authority to do with the new deal when congress granted him emergency powers-the sort of powers he would have had if the USA have been at war
When did Roosevelt set up the alphabet agencies
During the first hundred days in office
Why were the agencies called alphabet agencies to the people
People found it easier to remember them by their initials than by their full names
What was a result of Roosevelt realising the need to explain to the American people what he was doing
He set up fireside chats this resulted in the Americans having trust and confidence in his measures and in the recovery of the economy
What did Roosevelt say when he was sworn in as president
‘the only thing we have to fear is fear itself’
How did Roosevelt perform the fireside chats. Give how they were broadcast how many Americans listen to them and what the aims were.
Broadcast over radio to reach a large audience of millions of Americans and to talk directly to them. He sat in a chair by a fire in his office he explains in simple terms why USA falling into depression and what he proposed to do to end it
The broadcasts were hugely successful-give an example of the most successful Fireside chat and what this chat dealt with
The first Fireside chat was especially successful because it dealt with the banking crisis which affected nearly all Americans
When did Roosevelt introduced an emergency banking act
March 1933
What was the emergency banking act
It meant all banks were closed for four days.
During then gov officials inspected accounts of every bank.
Only banks properly managed allowed to be open and those supported by government loans
What was the result of the emergency banking act? Give 2
- savers kept account open
- customers who had withdrawn their money even started to get it back into their accounts
–> banking crisis over
When was the Glass-Steagull act past and by who
June 1933 by the government
What did the Glass-Steagull Act do?
Stopped banks speculating with their customers money By insisting that savings banks could not also be investment banks
What did the glass-Steagull act forbid
It forbade banks to own other finance companies and gave the US federal reserve the right to set interest rates.
What did the rules on the GS act improve
The honesty and stability of the US banking system
When was the AAA set up and what was its long name
May 1933. Called the agricultural adjustment administration
What did the AAA do
Helped farmers increase their income by paying to produce less food = Food prices go up farmers income increases
What was the effect on farmers incomes by the aaa in the period up to 1939
Farmers incomes double
